[ PRESIDENTIAL DECREE NO. 94, January 11, 1973 ]
CREATING THE CEMENT INDUSTRY AUTHORITY.
WHEREAS, it is to the national interest that all installed
industrial productive capacity be utilized fully in order to hasten the economic
development of the country;
WHEREAS, the cement industry in particular, in which the
Government has investments and guarantees exceeding one billion pesos, has a
productive capacity far in excess of the present and expected domestic
requirements for cement in the next few years;
WHEREAS, there exists a substantial foreign market for
cement which could be tapped by the Philippine Cement Industry thus utilizing
its idle capacity and generating needed foreign exchange for the country;
WHEREAS, a concerted and determined effort is necessary in
order to expand the export market for Philippine cement;
WHEREAS, an orderly and stable domestic market is a
desirable base for the development and maintenance of a substantial export
market;
WHEREAS, the establishment of such a domestic market and the
expansion of the export market can most expeditiously be accomplished through a
centralized government authority;
NOW, THEREFORE, I, FERDINAND E. MARCOS, Commander-in-Chief
of all the Armed Forces of the Philippines, pursuant to Proclamation No. 1081,
dated September 21, 1972, and General Order No. l, dated September 22, 1972, as
amended, do hereby create the Cement Industry Authority to regulate the cement
industry in the Philippines and to expand the cement export market to the end
that idle capacity be utilized, foreign exchange generated and greater labor
employment opportunities secured.
SECTION 1. The Cement Industry Authority shall be composed
of the Chairman of the Board of Investments, as Chairman, and the heads of the
Central Bank of the Philippines, Department of Finance, Department of Trade and
Tourism, and Development Bank of the Philippines, or their representatives, as
members. The secretariat of the Authority shall be provided by the
Board of Investments.
SEC. 2. The Cement Industry Authority shall constitute
itself immediately and shall exist for a period of three years from the date of
this Decree.
SEC. 3. The Cement Industry Authority shall handle all
exports of Philippine cement and clinker. No cement nor clinker may be exported
from the Philippines without the express approval of the Cement Industry
Authority, To carry out its export functions, it shall have the authority
to:
- Embark on a concerted and aggressive campaign to export cement;
- Negotiate and enter into contracts for the export of cement and clinker
under such terms and conditions as it may deem reasonable, taking into account
industry direct costs of production;
- Negotiate and enter into contracts for shipping facilities necessary for the
export of cement and clinker including the purchase and/or charter of vessels
when necessary;
- Establish and maintain advance depots or storage facilities for Philippine
cement in foreign markets whenever such facilities are deemed necessary for the
promotion of cement exports to those markets;
- Negotiate and enter into agreements with counterpart Authorities in cement
ex-
porting countries in order to prevent unreasonable competition and
maintain appropriate price levels for cement and clinker exports;
- Arrange the financing necessary to successfully meet its export commitments;
- Assign to and require any cement company to fill any export contract entered
into by the Authority;
- Conduct inspections of export shipments to test product quality and bag
weights; require cement plant when necessary and feasible, to alter products
specifications to meet specific export requirements;
- Establish and administer a scheme that will insure an equitable sharing
among all the companies in the industry of the benefits and burdens arising out
of exports;
- Make representations to the appropriate government institutions or agencies,
such incentives as may be necessary to enable the cement companies to attain the
export objectives of the Authority;
- Engage in such other activities as may be necessary, to carry out the export
objectives of the Authority.
SEC. 4. The Cement Industry Authority shall regulate all
phases of the distribution and marketing of cement for the domestic and
government market. No new cement plant shall be established nor shall any
existing cement plant be expanded without the express approval of the Cement
Industry Authority. To carry out its regulatory functions in the domestic
market, it shall have the authority to:
- Establish and enforce sales quotas, distribution areas and such other
marketing regulations as it may deem necessary to (i) allocate in an equitable,
orderly and efficient manner the domestic and government demand among all the
cement companies, and (ii) maintain the stability of the local market;
- Advice the Price Control Council in establishing and enforcing, in
conjunction with appropriate government agencies, uniform and reasonable selling
prices of cement at the various levels of distribution and within given
marketing areas, taking into account costs of production, transportation,
handling and warehousing;
- Conduct periodic inspections of all plants to (a) test product quality and
bag weights, (b) check inventories, production, sales and delivery records, and
(c) verify compliance with the rules and regulations that it may promulgate in
connection with the domestic marketing of cement;
- Impose appropriate penalties on cement companies, their distributors and
dealers for violation of any rule, quota or guideline established by the
Authority;
- Establish a reporting system and maintain statistical records on the
production, distribution and consumption of cement by geographic areas to serve
as the basis for the efficient and economic distribution of cement;
- Negotiate and enter into contracts for the bulk purchase of materials and
supplies common to all cement plants such as kraft paper, grinding balls,
silica, etc., and maintain inventories of such materials where necessary to
reduce operating costs of the Industry.
SEC. 5. The Cement Industry Authority may delegate such
powers granted herein to such industry, association or company in which all
cement companies are represented as may presently exist or be organized to
assist the Authority in carrying out its functions.
This Decree shall take effect immediately.
Done in the City of Manila, this 11th day of January, in the year of Our
Lord, nineteen hundred and seventy-three.
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(Sgd.) FERDINAND E. MARCOS President
Republic of the Philippines |
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By the President: |
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(Sgd.) ALEJANDRO MELCHOR |
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Executive Secretary |
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